Padding simply means adding extra space around your image. Imagine putting your photo inside a nice frame — that little gap between the frame and the photo is what padding does for your picture. When you add padding to PNG images, it doesn’t crop or distort them; instead, it gives your image room to stand out beautifully.
You can choose a transparent background if you want your PNG... https://tinywowtools.com/blogs/how-to-add-padding-to-png-images-without-losing-quality.php 
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